Ultimate Products: Russell Hobbs seller hit by rising shipping costs and weak demand

Consumer goods giant Ultimate Products, which owns Britain’s oldest homeware brand Salter and sells certain Russell Hobbs items under license, has seen its profit dip amid soaring shipping costs and reduced consumer demand.

The London-listed group, which is headquartered in Oldham, reported an adjusted pre-tax profit of £14.5m in the 12 months ending July 30, 2024, down from £16.8m in the year before.

Ultimate Products’ revenue also dipped, falling to £157m during the year, down from £166m in the 12 months before. The company said last year’s sales had been bolstered by exceptionally high demand for airfryers.

The group’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 11 per cent to £18m, down from £20.2m in the year before.

The company said these reduced figures were in line with its expectations and had been driven by a “significant increase in shipping rates” following attacks on vessels in the Red Sea area plus weakened consumer demand.

The group’s CEO, Andrew Gossage, said earlier this year that overstocking issues had “held back ordering” at many of the company’s retail partners, especially European supermarkets.

Looking forward, however, Ultimate Products said it was “cautiously optimistic” as supply chains started to “adapt to a new normal”.

Gossage said: “Our FY24 performance was not without its challenges but I am pleased to report that many of the temporary headwinds are now easing, as reflected in a healthy FY25 order book.

“As we look ahead to FY25 with cautious optimism, we are confident in the proven resilience of our business model and the ongoing demand for our fantastic range of leading homeware brands.”

The group, which sells Russell Hobbs cookware and laundry products under licence as well as owning the Beldray brands, floated on the London Stock Exchange in an IPO worth more than £100m in 2017.